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Stora Enso is planning restructuring actions to strengthen the group’s long term competitiveness, improve profitability and focus capital allocation in strategic growth markets. The company is also taking the next step in driving a decentralised operating model targeting increased customer centricity, business focus and cost reductions. The planned restructuring actions, combined with previously initiated negotiations in the Packaging Materials division, would result in total reductions of approximately 1150 employees.
Stora Enso plans to permanently close down its Sunila pulp production unit in Finland, the De Hoop containerboard site in the Netherlands, one containerboard line at its Ostrołęka site in Poland, and the Näpi sawmill in Estonia. The closures would target a reduction of approximately 600 employees.
It will initiate change negotiations regarding a planned reduction of office employees within its group functions. Approximately 1300 employees are within the scope of the group function negotiations, with a planned reduction of approximately 300 employees.
The company has recently completed a majority of the change negotiations in its Packaging Materials division with a reduction of approximately 250 positions in its management and support functions. ‘These measures are of course very difficult and would not be proposed unless it was absolutely necessary for our long term competitiveness. We are at a critical juncture in our strategy advancement, and to further our market position an increased focus on capital allocation and decentralised empowerment is needed. This sadly means that assets suffering from challenged profitability would need to be closed, in combination with a more streamlined headquarter organisation. Through these actions we would be able to continue to deliver strategic growth from a more resilient and cost efficient business platform, better equipped to support the long term growing demand for Stora Enso’s renewable products,’ said Annica Bresky, president and CEO. No decisions regarding the planned closures and employee reductions will be taken until the change negotiations have been concluded according to local regulations.
Stora Enso continues its journey towards a decentralised operating model with the target to increase customer centricity, business focus and divisional accountability. To support this direction, the company starts change negotiations regarding its plan for a more streamlined group functions organisation with increased business centricity and reduced overhead costs.
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